“tips related to income below 1099-NEC, 1099-MISC or 1099-K threshold” and “all other tips (such as cash) from individuals not subject to 1099 thresholds”, with a double asterisk that explains, “These tips are not currently eligible, but may be in the future.”

LC has nothing like that.  The Schedule C worksheet input says:  "Qualified tips included in Form 1099-NEC, 1099-MISC, or Form 1099-K."

Nearly all of his clients paid him less than $600 so there is no 1099 reporting requirement. 

And Example 3 in IRS notice 2025-69 shows that a self-employed individual does NOT need to have tips reported on a 1099.  The below words in bold are by me.

Example 3. Individual D is a self-employed travel guide who operates as a sole
proprietor. In 2025, Individual D receives $7,000 in tips from customers paid through a
third-party settlement organization as defined in section 6050W(b)(3). For tax year
2025, Individual D receives a Form 1099-K from an online booking platform that is a
third-party settlement organization as defined in section 6050W(b)(3) showing $55,000
of total payments. The Form 1099-K does not separately identify the tips. However,
Individual D keeps a log of each tour that shows the date, customer, and tip amount
received. Because Individual D has daily tip logs substantiating the $7,000 tip amount,
D may use the $7,000 tip amount in determining qualified tips for tax year 2025.

Bill is not entirely correct.